However, current legislation was not designed, and is ill-equipped, to handle the rapid technological developments taking place, such as the explosion of social networking sites, the use of targeted behavioural advertising and the use of more sophisticated flash cookies. This is a matter that the European Commission has recognised and has communicated its plans to reform the EU data protection rules.

With the increase in value of personal data it becomes increasingly important for companies to understand the rules governing data protection and privacy and to ensure they are effectively implemented. This is not simply a matter of complying with arcane laws. It is a necessity for building value, trust, reputation and goodwill.

In an effort to draw attention to the issues, the EU has nominated today, 28 January 2011, as "Data Protection Day 2011". On this day we look back over some of the major developments in data protection in 2010 and highlight some issues to watch in 2011.

On Tuesday 1st February 2011, the Entrepreneur Country Forum will be discussing 'We know who you are'. Join us http://encountry.eventbrite.com/